Aug 24 2004
The Board of Directors of Hindalco and Indal in their respective meetings today have approved a scheme of arrangement between the two Companies, which entails the demerger of all the businesses of Indal with the exception of the business pertaining to the foil plant at Kollur, into Hindalco. The scheme of arrangement is subject to necessary approvals, and will take effect retrospectively from 1 April 2004 when sanctioned by the courts.
According to Mr. Kumar Mangalam Birla, Chairman of the Aditya Birla Group, "Hindalco owns nearly 97 per cent equity in Indal. I believe that the time is opportune to take this strategic stake to its logical conclusion. We would like to bring in maximum focus and harness all possible synergies to attain even higher levels of growth and enhance stakeholder value."
Over the last four years, both Hindalco and Indal have worked in tandem for the growth and development of the aluminium sector. Both Hindalco and Indal have posted path-breaking results. Such a move would help in leveraging their combined strengths even further said Mr. D. Bhattacharya, Managing Director, Hindalco.
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August 23rd, 2004